Hong Kong Government consumption vouchers

Hi, I received £5000 consumption vouchers under Hong Kong Government Consumption Vouchers Scheme (CVS) (Phase 1) in FY2022-23. The detail of the vouchers could be found in this linkhttps://www.consumptionvoucher.gov.hk/202122/en/newround.html#. In gist, the 2022-23 Budget of Hong Kong Government implemented a CVS under which consumption vouchers with a total value of $10,000 will be disbursed to each eligible person. In Phase I, $5,000 consumption voucher first was disbursed on 7 April 2022 to eligible people. The consumption vouchers could be used at local retail, catering and service outlets or their online platforms which accepted payments by Alipay HK, Octopus, Tap & Go and WeChat Pay HK. Examples include retail shops, market stalls, department stores, supermarkets, convenience stores, restaurants, fast food shops, coffee shops, recreational facilities, beauty salons, public transport, etc. I would like to ask if I need to report the value of this Consumption Voucher in self assessment as either income tax or capital gain tax. 

Hi Mag Mak,

It is seen as a cash payment and should therefore be declared as income in the foreign section. 

Thank you. 



 

Hi HMRC Admin, I would like to supplement that the consumption vouchers cannot be cash out and the amount can only be used in Hong Kong local retail. The consumption voucher would be expired and forfeited within few months even if I don't spend or use part of it. Could you advise if it is still treated as income and declared in UK please? Thanks.

Hi,

It is seen as financial support, you would need to provide details in order to confirm if still classed as cash.

Thank you.

Hi HMRC Admin, Please note that the consumption vouchers are distributed through the electronic channel, such as a standalone visa / mastercard platform (standalone stored value facilities) in which we CANNOT transfer the voucher amount to our bank account or cash out. The amount can only be used and paid to the retailers of Hong Kong. The amount is not deemed as taxable income in Hong Kong. Could you advise if it is still taxable and required to be declared in UK please? Thank you.

The mentioned consumption vouchers were launched by Hong Kong Government for boosting the economy. The amount should be HK$5,000 (around £500). That scheme was similar as High Street Scheme (£100) run in Northern Ireland. The consumption vouchers were granted to every eligible Hong Kong residents. You do not require to apply. As most Hong Kong emigrants' Mandatory Provident Funds are held "hostage", they therefore still treat as residents to benefit from this consumption vouchers scheme. The voucher could not "cash out" and you can only spend it in Hong Kong only. Unused amount would then be forfeited at its expiry date. As you mentions that it should count as financial support, could you please provide the relevant law section for our reference? Thank you.

Hi Kain Shin,

As you cannot actually remove it from China to use anywhere else, then this would not need to be declared.

Thank you.

Hi,

As you cannot transfer the voucher outside of Hong Kong, this is not taxable income and doesnt need to be declared.

Thank you.